Should I report 1 or 2 balances each month?

[Anonymous]

Hello everyone, I just learned of the tactic of only reporting 1 low-utilization balance each month (and paying off the other balances in full each month), and cycling which card reports the balance, so I'm not quite sure what to do here.

I just converted my Bank of America Cash Rewards to a Better Balance Rewards...the rule on the new card is that I have to have a balance report every month to qualify for the $25/quarter bonus, and then I can immediately PIF (which I will do, and will likely only make one charge on per month because it is not a % CB card). However, this means that, obviously, I must report a balance on this card every month. Should I just do this every month and then cycle the balances on my other cards (e.g. Jul = report balances on my B of A BBB and my SF Visa, Aug = report balances on my B of A BBB and my Discover, Sep = report balances on my B of A BBB and my SM MC, etc.)? Or would I be better off just paying off all the other cards each month and solely reporting the balance on the B of A BBB each month? I'm leaning towards the former, but I'm not sure at all.

If any other information is necessary, please let me know. Thanks.

[nachoslibres]

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@Anonymous wrote:

Hello everyone, I just learned of the tactic of only reporting 1 low-utilization balance each month (and paying off the other balances in full each month), and cycling which card reports the balance, so I'm not quite sure what to do here.

I just converted my Bank of America Cash Rewards to a Better Balance Rewards...the rule on the new card is that I have to have a balance report every month to qualify for the $25/quarter bonus, and then I can immediately PIF (which I will do, and will likely only make one charge on per month because it is not a % CB card). However, this means that, obviously, I must report a balance on this card every month. Should I just do this every month and then cycle the balances on my other cards (e.g. Jul = report balances on my B of A BBB and my SF Visa, Aug = report balances on my B of A BBB and my Discover, Sep = report balances on my B of A BBB and my SM MC, etc.)? Or would I be better off just paying off all the other cards each month and solely reporting the balance on the B of A BBB each month? I'm leaning towards the former, but I'm not sure at all.

If any other information is necessary, please let me know. Thanks.

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It won't matter much honestly.  But I would just let the balance on the BA card post and have every thing else already paid off if you are really worried about it.

[takeshi74]

Doesn't really matter unless you're apping for something.  Utilization doesn't carry over from month to month.  Just keep it under 30%.  If you're applying for something you can optimize with 1 balance at 10% or less.

If you want to do so every month it's really your call how you want to handle it.

[Anonymous]

"Doesn't really matter unless you're apping for something.  Utilization doesn't carry over from month to month.  Just keep it under 30%.  If you're applying for something you can optimize with 1 balance at 10% or less.

If you want to do so every month it's really your call how you want to handle it."

^^Is this true? Everything I'm seeing is that credit scores are based on regularity and a cumulative effect, not just the most recent month (even for Utilization). And given that Amount Owed / Utilization makes up for 30% of credit score, I would've never guessed that you could simply optimize it in one month...

[Anonymous]

"Doesn't really matter unless you're apping for something.  Utilization doesn't carry over from month to month.  Just keep it under 30%.  If you're applying for something you can optimize with 1 balance at 10% or less.

If you want to do so every month it's really your call how you want to handle it."

^^Is this true? Everything I'm seeing is that credit scores are based on regularity and a cumulative effect, not just the most recent month (even for Utilization). And given that Amount Owed / Utilization makes up for 30% of credit score, I would've never guessed that you could simply optimize it in one month...

[nachoslibres]

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@Anonymous wrote:

"Doesn't really matter unless you're apping for something.  Utilization doesn't carry over from month to month.  Just keep it under 30%.  If you're applying for something you can optimize with 1 balance at 10% or less.

If you want to do so every month it's really your call how you want to handle it."

^^Is this true? Everything I'm seeing is that credit scores are based on regularity and a cumulative effect, not just the most recent month (even for Utilization). And given that Amount Owed / Utilization makes up for 30% of credit score, I would've never guessed that you could simply optimize it in one month...

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Utilization affects your score, but like takeshi said it isn't one of those things that affects it long term.  So you carry a high utilization one month be prepared for your score to drop.  Then the next month when you get the utilization back down the score will then go back up.